FRI, JANUARY 25 2019-theG&BJournal- The Central Bank of Nigeria (CBN) told Bloomberg yesterday of new bank requirements that will be stricter in terms of what funding qualifies as capital. It said it will also require lenders to create “capital conservation” and “counter-cyclical” buffers.
The news stirred mixed reaction from the banking community but mostly well received. The new set of rules which aligns with a global accord known as Basel III will be introduced in the second quarter of 2019 according to the apex bank.
According to CBN, the rule seeks to protect the nation’s banks “against shocks emanating locally and from abroad” by increasing the level of regulatory capital and the quality of the assets.
Last year, banks were compelled to migrate to a new accounting standard known as IFRS 9 to improve disclosure by forcing lenders to provide for existing losses as well as those that might occur in the future.
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